WFP Q1 2019 Results Hit Hard by Challenging Markets

SEATTLE (Scrap Monster): Western Forest Products, Inc. reported results for the first quarter of 2019. The quarterly results were badly impacted by challenging markets and difficult operating conditions. The delay in typical spring lumber demand due to prolonged winter resulted in operational downtime.

According to company press release, it reported adjusted EBITDA of $18.1 million in Q1 2019. This compares with the adjusted EBITDA of $43 million in the corresponding quarter in 2018. The operating income too recorded notable decline from $32.6 million in the first quarter of 2018 to $5.7 million in Q1 this year. The net income of $1.9 million was much lower when matched with $21.7 million during the first quarter of 2018. Also, the quarterly revenue totaled $275.7 million.

The WFP lumber shipment volumes witnessed a decline of 6% on account of weak demand due to slowdown in U.S. housing starts and extreme winter weather conditions across North America. The lumber revenue too dropped by 4% to $218.9 million. Meantime, the lumber production at 202 million board feet during the quarter was down by 3% upon comparison with the first quarter of 2018.

The Q1 2019 log revenue remained more or less unchanged at $41.2 million with the first quarter of 2018. Log shipments too remained flat. The log production from WFP’s B.C. coastal operations recorded a decline by 10% to total 922,000 cubic metres. A 5% decline in log inventory was reported at the end of first quarter 2019.